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An operating agreement should include the following: Percentage of members' ownership. Meeting provisions and voting rights. Powers and duties of members and management. Distribution of profits and losses. Tax treatment preference. A liability statement. Management structure. Operating procedures.

The multimember operating agreement is specially designed for LLCs with more than one owner. It is the only document that designates an LLC's owners and the percentage of the company they own. Both members should sign the operating agreement in the presence of a notary public.

An operating agreement is a document used by limited liability companies (LLCs) to define roles, responsibilities, and liabilities for the business. This includes basic information for the LLC, such as the business address and contact information for each partner.

What should a multi-member operating agreement include? Affirms that the LLC has been formed by state laws and will conduct lawful business. Notes where key business information (such as member info and registered agent) can be found. Lists the events that can end the business (and how members can continue the LLC)

A supermajority is an amendment to a company's corporate charter requiring a larger than normal majority of shareholders to approve important changes in the company. A majority would be any percentage above 50%, however, a supermajority stipulates a higher percentage, usually between 67% and 90%.

Common pitfalls of a poorly drafted Operating Agreement include failing to: (i) specify what authority managers or members have; (ii) carve out key decisions that require a higher approval threshold (e.g., dissolution, sale of all or substantially all of the assets of the LLC, etc.); (iii) address how deadlocks in the ...